lawsuit loans

Important Things to Know About Lawsuit Loans

You believe you have a valid Jones Act claim, but your employer is pushing back. In the meantime, you have bills piling up and no way to take care of your family. At this point, you might start considering a lawsuit loan, also known as a pre-settlement lawsuit loan. Before you sign on the dotted line, make sure you know exactly what you’re agreeing to.

If you need more personalized help with your maritime injury claim, it’s time to contact Fuquay Law Firm. Call us at 251-219-0329 to schedule a time to meet now.

Delays Can Leave You Financially Stranded

Lawsuits can take months to settle. In the meantime, though, your creditors are still coming after you and your options are limited. That’s why these lawsuit funding companies exist. They strive to provide a short-term solution to the financial strain caused by a delay in settlement money.

Funding Companies Don’t Like Taking Risks

However, don’t take this to mean that lawsuit funding companies are doing a favor for you. They don’t like taking financial risks, and they know that if your claim is unsuccessful, they cannot recover anything from you. Because of this, they are very picky about when they will and will not offer settlement loans. If there’s any significant chance that your case will be unsuccessful, they are unlikely to approve your application. Many only approve applications where the final settlement is basically just waiting on paperwork.

How Much You Borrow Matters

If you are approved for a pre-settlement lawsuit loan, the company will tell you how much they are willing to lend you. Don’t just take the maximum amount because you can. Remember, you’ll have to pay interest on what you borrow, and you don’t want to be saddled with interest because you decided to treat yourself to something unnecessary.

Figure out how much you’ll need to cover your immediate and upcoming expenses, then add a bit more as a cushion. The less you borrow, the less interest you will accrue—and the more of your final settlement check you will actually be able to keep.

You’ll Probably Pay a High-Interest Rate

This is the tough part for many injured maritime employees. Lenders are providing a service, and they know that you probably don’t have many options. As a result, many have no issue charging exorbitant interest rates. While some companies are more reasonable in what they charge, others have interest rates similar to what you would pay at a payday loan shop.

This seriously cuts into your settlement check and can leave you with just a fraction of what you expected to get back. That’s why, if you must go this route, it’s crucial to compare your options. Instead of going with the first company you find, compare interest rates, fees, and other expenses at different funding companies. You want to keep as much of your money as possible.

You May Want to Consider Other Options First

That being said, you may only want to consider a lawsuit loan if you truly have no other options to consider. If you only need a little bit of money to tide you over, consider asking friends or family to help you out. If you need more money, you might want to turn to your bank for a personal loan or an increase in your credit card limit. Regardless of what other options you have, they are likely to cost you less money than a lawsuit loan will.

If a lawsuit loan is the only choice you have, talk to your attorney about your options. They may have experience with different companies and know which ones treat their customers fairly.

Discuss Your Maritime Injury Claim with Fuquay Law Firm

Maritime injuries can be financially devastating, often leaving victims with serious injuries, limited work opportunities, and other losses. That’s why it’s crucial to talk to a maritime injury attorney as soon as possible. The team at Fuquay Law Firm can listen to the details of your claim and help you explore your options. Set up a meeting now by contacting us at 251-219-0329 or filling out our online contact form.

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